Over time athenahealth has been looking for more acquisitions to build more research capabilities into its product design and in particular for mobile healthcare.

AthenaHealth Inc., a web-based developer of electronic medical records for hospitals and health systems, is making a key acquisition to build out its mobile healthcare base.

Watertown, Mass.-based athenahealth is spending $63 million to acquire Praxify Technologies Inc., a Palo Alto, Calif., developer of mobile health systems and apps. Founded in 2010, Praxify develops and markets apps that help doctors access faster clinical decisions by accessing patient data via a smartphone.

Praxify, which claims doctors in 23 specialties have used its mobile health system and apps to aid in the treatment of 5 million patients, develops a pair of products for acute and ambulatory care and care management.

Praxify’s mobile healthcare product for acute and ambulatory care is a virtual assistant app called Mira, which integrates with an electronic health record system, displays patient data in quick reading charts and includes voice activation for faster note taking and issuing treatment orders.

The company’s care management mobile health platform—Siya—is a downloadable Google and Apple app for patients that enables them to receive virtual health coaching, integrate with wearables, conduct a telehealth visit, send messages to doctors, access their medical records and schedule appointments.

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“Praxify is focused on reinventing how doctors work with health data to drive productivity, portability, and improved decision support and athenahealth expects that the acquisition will advance the company’s platform strategy and mobile capabilities,” says athenahealth chief technology officer Prakash Khot.

Athenahealth is a developer of cloud computing products and services for hospital medical record, revenue cycle, patient engagement, care coordination, and population health services management systems.

Over time athenahealth has been looking for more acquisitions to build more research capabilities into its product design and in particular for mobile healthcare, Khot says. “Athenahealth believes this acquisition will accelerate research and development initiatives across the company by adding significant expertise in mobile and user experience design,” he says.

Praxify also has expertise in building and maintaining electronic health records systems with more machine learning and natural language processing capability, Khot says.

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Athenahealth didn’t release certain details about the transaction including if Praxify name will be kept, the company’s annual revenue and the role top Praxify executives such as co-founder and CEO Abhjjit Gupta will assume with athenahealth once the deal is complete. Athenahealth also didn’t say when the deal would be fully executed but “is subject to the customary closing conditions.”

In 2016 revenue for athenahealth increased 18.5% to $1.05 billion from $886.1 million in 2015. Net income in 2016 was $21 million vs. $14 million in 2015. For the first quarter ended March 31, athenahealth grew revenue 12.4% to $278.3 million from $247.5 million in the prior year. Net loss was $1.4 million and a net loss of $800,000 for the first quarter in 2016.

 

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